Solicitors Act 1974

any party to, or the representative of any party to, the agreement may apply to the court, and the court shall have the same jurisdiction as to enforcing the agreement so far as it has been performed, or setting it aside, as the court would have had if the solicitor had not died or become incapable of acting, or the client had not changed his solicitor.

• (2) The court, notwithstanding that it is of the opinion that the agreement is in all respects fair and reasonable, may order the amount due in respect of business under the agreement to be ascertained by assessment, and in that case—

• (a) the costs officer, in ascertaining that amount, shall have regard so far as may be to the terms of the agreement; and

• (b) payment of the amount found by him to be due may be enforced in the same manner as if the agreement had been completely performed.

• (3) If in such a case as is mentioned in subsection (1)(b) an order is made for the assessment of the amount due to the solicitor in respect of the business done under the agreement, the court shall direct the costs officer to have regard to the circumstances under which the change of solicitor has taken place, and the costs officer, unless he is of the opinion that there has been no default, negligence, improper delay or other conduct on the part of the solicitor , or any of his employees, affording the client reasonable ground for changing his solicitor, shall not allow to the solicitor the full amount of the remuneration agreed to be paid to him.

Form of bill of costs for contentious business

64

• (1) Where the remuneration of a solicitor in respect of contentious business done by him is not the subject of a contentious business agreement, then, subject to subsections (2) to (4), the solicitor’s bill of costs may at the option of the solicitor be either a bill containing detailed items or a gross sum bill.

• (2) The party chargeable with a gross sum bill may at any time—

• (a) before he is served with a writ or other originating process for the recovery of costs included in the bill, and

• (b) before the expiration of three months from the date on which the bill was delivered to him,

require the solicitor to deliver, in lieu of that bill, a bill containing detailed items; and on such a requirement being made the gross sum bill shall be of no effect.

• (3) Where an action is commenced on a gross sum bill, the court shall, if so requested by the party chargeable with the bill before the expiration of one month from the service on that party of the writ or other originating process, order that the bill be assessed.

• (4) If a gross sum bill is assessed, whether under this section or otherwise, nothing in this section shall prejudice any rules of court with respect to assessment, and the solicitor shall furnish the costs officer with such details of any of the costs covered by the bill as the costs officer may require.

Security for costs and termination of retainer

65

• (1) A solicitor may take security from his client for his costs, to be ascertained by assessment or otherwise, in respect of any contentious business to be done by him.

• (2) If a solicitor who has been retained by a client to conduct contentious business requests the client to make a payment of a sum of money, being a reasonable sum on account of the costs incurred or to be incurred in the conduct of that business and the client refuses or fails within a reasonable time to make that payment, the refusal or failure shall be deemed to be a good cause whereby the solicitor may, upon giving reasonable notice to the client, withdraw from the retainer.

Taxations with respect to contentious business

66

Subject to the provisions of any rules of court, on every assessment of costs in respect of any contentious business, the costs officer may—

• (a) allow interest at such rate and from such time as he thinks just on money disbursed by the solicitor for the client, and on money of the client in the hands of, and improperly retained by, the solicitor or an employee of the solicitor; and

• (b) in determining the remuneration of the solicitor, have regard to the skill, labour and responsibility involved in the business done by him or by any employee of his who is an authorised person (within the meaning of section 56(5A)).

Remuneration—general

Inclusion of disbursements in bill of costs

67

A solicitor’s bill of costs may include costs payable in discharge of a liability properly incurred by him on behalf of the party to be charged with the bill (including counsel’s fees) notwithstanding that those costs have not been paid before the delivery of the bill to that party; but those costs—

• (a) shall be described in the bill as not then paid; and

• (b) if the bill is assessed , shall not be allowed by the costs officer unless they are paid before the assessment is completed.

Power of court to order solicitor to deliver bill, etc.

68

• (1) The jurisdiction of the High Court to make orders for the delivery by a solicitor of a bill of costs, and for the delivery up of, or otherwise in relation to, any documents in his possession, custody or power, is hereby declared to extend to cases in which no business has been done by him in the High Court.

• (2) The county court and the family court each have the same jurisdiction as the High Court to make orders making such provision as is mentioned in subsection (1) in cases where the bill of costs or the documents relate wholly or partly to contentious business done by the solicitor in the county courtor (as the case may be) the family court.

• (3) In this section and in sections 69 to 71 “solicitor” includes the executors, administrators and assignees of a solicitor.

Action to recover solicitor's costs

69

• (1) Subject to the provisions of this Act, no action shall be brought to recover any costs due to a solicitor before the expiration of one month from the date on which a bill of those costs is delivered in accordance with the requirements mentioned in subsection (2); but if there is probable cause for believing that the party chargeable with the costs—

• (a) is about to quit England and Wales, to become bankrupt or to compound with his creditors, or

• (b) is about to do any other act which would tend to prevent or delay the solicitor obtaining payment,

the High Court may, notwithstanding that one month has not expired from the delivery of the bill, order that the solicitor be at liberty to commence an action to recover his costs and may order that those costs be assessed.

• (2) The requirements referred to in subsection (1) are that the bill must be—

• (a) signed in accordance with subsection (2A), and

• (b) delivered in accordance with subsection (2C).

• (2A) A bill is signed in accordance with this subsection if it is—

• (a) signed by the solicitor or on his behalf by an employee of the solicitor authorised by him to sign, or

• (b) enclosed in, or accompanied by, a letter which is signed as mentioned in paragraph (a) and refers to the bill.

• (2B) For the purposes of subsection (2A) the signature may be an electronic signature.

• (2C) A bill is delivered in accordance with this subsection if—

• (a) it is delivered to the party to be charged with the bill personally,

• (b) it is delivered to that party by being sent to him by post to, or left for him at, his place of business, dwelling-house or last known place of abode, or

• (c) it is delivered to that party—

• (i) by means of an electronic communications network, or

• (ii) by other means but in a form that nevertheless requires the use of apparatus by the recipient to render it intelligible,

and that party has indicated to the person making the delivery his willingness to accept delivery of a bill sent in the form and manner used.

• (2D) An indication to any person for the purposes of subsection (2C)(c)—

• (a) must state the address to be used and must be accompanied by such other information as that person requires for the making of the delivery;

• (b) may be modified or withdrawn at any time by a notice given to that person.

• (2E) Where a bill is proved to have been delivered in compliance with the requirements of subsections (2A) and (2C), it is not necessary in the first instance for the solicitor to prove the contents of the bill and it is to be presumed, until the contrary is shown, to be a bill bona fide complying with this Act.

• (2F) A bill which is delivered as mentioned in subsection (2C)(c) is to be treated as having been delivered on the first working day after the day on which it was sent (unless the contrary is proved).

• (3) Where a bill of costs relates wholly or partly to contentious business done in the county court and the amount of the bill does not exceed £5,000, the powers and duties of the High Court under this section and sections 70 and 71 in relation to that bill may be exercised and performed by the county court.

• (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (5) In this section references to an electronic signature are to be read in accordance with section 7(2) of the Electronic Communications Act 2000 (c. 7).

• (6) In this section—

• “ electronic communications network ” has the same meaning as in the Communications Act 2003 (c. 21);

• “ working day ” means a day other than a Saturday, a Sunday, Christmas Day, Good Friday or a bank holiday in England and Wales under the Banking and Financial Dealings Act 1971 (c. 80).

Taxation on application of party chargeable or solicitor

70

• (1) Where before the expiration of one month from the delivery of a solicitor’s bill an application is made by the party chargeable with the bill, the High Court shall, without requiring any sum to be paid into court, order that the bill be assessed and that no action be commenced on the bill until the assessment is completed.

• (2) Where no such application is made before the expiration of the period mentioned in subsection (1), then, on an application being made by the solicitor or, subject to subsections (3) and (4), by the party chargeable with the bill, the court may on such terms, if any, as it thinks fit (not being terms as to the costs of the assessment), order—

• (a) that the bill be assessed; and

• (b) that no action be commenced on the bill, and that any action already commenced be stayed, until the assessment is completed.

• (3) Where an application under subsection (2) is made by the party chargeable with the bill—

• (a) after the expiration of 12 months from the delivery of the bill, or

• (b) after a judgment has been obtained for the recovery of the costs covered by the bill, or

• (c) after the bill has been paid, but before the expiration of 12 months from the payment of the bill.

no order shall be made except in special circumstances and, if an order is made, it may contain such terms as regards the costs of the assessment as the court may think fit.

• (4) The power to order assessment conferred by subsection (2) shall not be exercisable on an application made by the party chargeable with the bill after the expiration of 12 months from the payment of the bill.

• (5) An order for the assessment of a bill made on an application under this section by the party chargeable with the bill shall, if he so requests, be an order for the assessment of the profit costs covered by the bill.

• (6) Subject to subsection (5), the court may under this section order the assessment of all the costs, or of the profit costs, or of the costs other than profit costs and, where part of the costs is not to be assessed, may allow an action to be commenced or to be continued for that part of the costs.

• (7) Every order for the assessment of a bill shall require the costs officer to assess not only the bill but also the costs of the assessment and to certify what is due to or by the solicitor in respect of the bill and in respect of the costs of the taxation .

• (8) If after due notice of any assessment either party to it fails to attend, the officer may proceed with the assessment ex parte.

• (9) Unless—

• (a) the order for assessment was made on the application of the solicitor and the party chargeable does not attend the assessment , or

• (b) the order for assessment or an order under subsection (10) otherwise provides,

the costs of an assessment shall be paid according to the event of the assessment , that is to say, if the amount of the bill is reduced by one fifth, the solicitor shall pay the costs, but otherwise the party chargeable shall pay the costs.

• (10) The costs officer may certify to the court any special circumstances relating to a bill or to the assessment of a bill, and the court may make such order as respects the costs of the assessment as it may think fit.

• (11) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (12) In this section “profit costs” means costs other than counsel’s fees or costs paid or payable in the discharge of a liability incurred by the solicitor on behalf of the party chargeable, and the reference in subsection (9) to the fraction of the amount of the reduction in the bill shall be taken, where the assessment concerns only part of the costs covered by the bill, as a reference to that fraction of the amount of those costs which is being assessed.

Taxation on application of third parties

71

• (1) Where a person other than the party chargeable with the bill for the purposes of section 70 has paid, or is or was liable to pay, a bill either to the solicitor or to the party chargeable with the bill, that person, or his executors, administrators or assignees may apply to the High Court for an order for the assessment of the bill as if he were the party chargeable with it, and the court may make the same order (if any) as it might have made if the application had been made by the party chargeable with the bill.

• (2) Where the court has no power to make an order by virtue of subsection (1) except in special circumstances it may, in considering whether there are special circumstances sufficient to justify the making of an order, take into account circumstances which affect the applicant but do not affect the party chargeable with the bill.

• (3) Where a trustee, executor or administrator has become liable to pay a bill of a solicitor, then, on the application of any person interested in any property out of which the trustee, executor or administrator has paid, or is entitled to pay, the bill, the court may order—

• (a) that the bill be assessed on such terms, if any, as it thinks fit; and

• (b) that such payments, in respect of the amount found to be due to or by the solicitor and in respect of the costs of the assessment, be made to or by the applicant, to or by the solicitor, or to or by the executor, administrator or trustee, as it thinks fit.

• (4) In considering any application under subsection (3) the court shall have regard—

• (a) to the provisions of section 70 as to applications by the party chargeable for the assessment of a solicitor’s bill so far as they are capable of being applied to an application made under that subsection;

• (b) to the extent and nature of the interest of the applicant.

• (5) If an applicant under subsection (3) pays any money to the solicitor, he shall have the same right to be paid that money by the trustee, executor or administrator chargeable with the bill as the solicitor had.

• (6) Except in special circumstances, no order shall be made on an application under this section for the assessment of a bill which has already been assessed.

• (7) If the court on an application under this section orders a bill to be assessed, it may order the solicitor to deliver to the applicant a copy of the bill on payment of the costs of that copy.

Supplementary provisions as to taxations

72

• (1) Every application for an order for the assessment of a solicitor’s bill or for the delivery of a solicitor’s bill and for the delivery up by a solicitor of any documents in his possession, custody or power shall be made in the matter of that solicitor.

• (2) Where a costs officer is in the course of assessing a bill of costs, he may request the costs officer of any other court to assist him in assessing any part of the bill, and the costs officer so requested shall assess that part of the bill and shall return the bill with his opinion on it to the costs officer making the request.

• (3) Where a request is made as mentioned in subsection (2), the costs officer who is requested to assess part of a bill shall have such powers, and may take such fees, in respect of that part of the bill, as he would have or be entitled to take if he were assessing that part of the bill in pursuance of an order of the court of which he is an officer; and the costs officer who made the request shall not take any fee in respect of that part of the bill.

• (4) The certificate of the costs officer by whom any bill has been assessed shall, unless it is set aside or altered by the court, be final as to the amount of the costs covered by it, and the court may make such order in relation to the certificate as it thinks fit, including, in a case where the retainer is not disputed, an order that judgment be entered for the sum certified to be due with costs.

Charging orders

73

• (1) Subject to subsection (2), any court in which a solicitor has been employed to prosecute or defend any suit, matter or proceedings may at any time—

• (a) declare the solicitor entitled to a charge on any property recovered or preserved through his instrumentality for his assessed costs in relation to that suit, matter or proceeding; and

• (b) make such orders for the assessment of those costs and for raising money to pay or for paying them out of the property recovered or preserved as the court thinks fit;

and all conveyances and acts done to defeat, or operating to defeat, that charge shall, except in the case of a conveyance to a bona fide purchaser for value without notice, be void as against the solicitor.

• (2) No order shall be made under subsection (1) if the right to recover the costs is barred by any statute of limitations.

Special provisions as to contentious business done in county courts

74

• (1) The remuneration of a solicitor in respect of contentious business done by him in the county court shall be regulated in accordance with sections 59 to 73, and for that purpose those sections shall have effect subject to the following provisions of this section.

• (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (3) The amount which may be allowed on the assessment of any costs or bill of costs in respect of any item relating to proceedings in the county court shall not, except in so far as rules of court may otherwise provide, exceed the amount which could have been allowed in respect of that item as between party and party in those proceedings, having regard to the nature of the proceedings and the amount of the claim and of any counterclaim.

Saving for certain enactments

75

Nothing in this Part of this Act shall affect the following enactments, that is to say—

• (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (c) any of the provisions of the Costs in Criminal Cases Act 1973;

• (d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (e) any other enactment not expressly repealed by this Act which authorises the making of rules or orders or the giving of directions with respect to costs, or which provides that any such rule, order or direction made or given under a previous enactment shall continue in force.

Part IV — Miscellaneous and General

The Society

Non-practising solicitors eligible for membership of Society

76

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Annual subscription to Society

77

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Cessation and suspension of membership of Society

78

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Committees of the Council

79

• (1) The Council may arrange for any function of the Council (including any function exercisable by the Council by virtue of section 80) to be exercised by—

• (a) a committee of the Council,

• (b) a sub-committee of such a committee,

• (c) a body corporate which is established for the purpose of providing services to the Council (or any committee of the Council) and is a wholly-owned subsidiary of the Society, or

• (d) an individual (whether or not a member of the Society's staff).

• (2) Where by virtue of subsection (1) any function may be discharged by a committee, the committee may arrange for the discharge of the function by—

• (a) a sub-committee of that committee,

• (b) a body corporate which is established for the purpose of providing services to the Council (or any committee of the Council) and is a wholly-owned subsidiary of the Society, or

• (c) an individual (whether or not a member of the Society's staff).

• (3) Where, by virtue of subsection (1) or (2), any function may be discharged by a sub-committee, that sub-committee may arrange for the discharge of the function by an individual (whether or not a member of the Society's staff).

• (4) Arrangements made under this section in respect of a function may provide that the function is to be exercised in accordance with the arrangements only (and not by the delegating body).

• (5) In subsection (4) “the delegating body” means—

• (a) in the case of arrangements under subsection (1), the Council;

• (b) in the case of arrangements under subsection (2), the committee;

• (c) in the case of arrangements under subsection (3), the sub-committee.

• (6) Subsections (2) and (3) have effect subject to any contrary direction given by the Council.

• (7) Where arrangements under subsection (3) relate to a function delegated by a committee under subsection (2), subsection (3) also has effect subject to any contrary direction given by that committee.

• (8) Any power given by subsection (1), (2) or (3) may be exercised so as to impose restrictions or conditions on the body or individual by whom the function is to be discharged.

• (9) A committee or sub-committee may include or consist of individuals other than—

• (a) members of the Council;

• (b) members of the Society;

• (c) solicitors.

• (10) A sub-committee of a committee may also include or consist of individuals other than members of the committee.

• (11) The Council may make arrangements for the appointment and removal of members of any committee to be made other than by the Council.

• (12) A committee or sub-committee may regulate its own procedure, including quorum.

• (13) The validity of any proceedings of a committee or sub-committee is not affected by any vacancy among its members.

• (14) In this section “wholly-owned subsidiary” has the meaning given by section 1159 of the Companies Act 2006.

• (15) This section is subject to any provision to the contrary made by or under any enactment.

Powers to act on behalf of Society

80

• (1) Anything authorised or required to be done by the Society under or in pursuance of this Act or any other enactment (or of any instrument made under this Act or any other enactment) may be done on behalf of the Society by the Council; and the power to delegate functions conferred by section 79 shall include power to delegate functions exercisable by the Council by virtue of this subsection.

• (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (3) In any proceedings a document purporting to be certified by the Secretary of the Society as a copy of a resolution passed by the Council or a committee of the Council or sub–committee on a specified date shall be evidence that that resolution was duly passed by the Council , committee or sub–committee on that date.

Miscellaneous

Administration of oaths and taking of affidavits

81

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Qualification for holding office of solicitors who have been barristers

82

Power of Society to inspect file of proceedings in bankruptcy of solicitor

83

Where proceedings in bankruptcy have been taken against any solicitor, the Society shall be entitled—

• (a) to inspect the file of those proceedings without payment of any fee; and

• (b) to be supplied with office copies of those proceedings on payment of the usual charge.

Service of documents at solicitor's place of business

84

• (1) For the purpose of facilitating the service of notices and other documents, every solicitor who has in force, or has applied for, a practising certificate shall give notice to the Society of any change in his place or places of business before the expiration of 14 days from the date on which the change takes effect.

• (2) Any notice or other document required or authorised by or by virtue of this Act to be served on any person may be served on him by delivering it to him, by leaving it at his proper address or by sending it by post.

• (3) Any such notice or document may be served on a practising solicitor, without prejudice to any other method of service, by sending it in a registered letter addressed to him at any place specified as his place of business, or one of his places of business, in his latest application for a practising certificate or in any subsequent notice under subsection (1).

Bank accounts

85

Where a solicitor keeps an account with a bank or a building society in pursuance of rules under section 32—

• (a) the bank or society shall not incur any liability, or be under any obligation to make any inquiry, or be deemed to have any knowledge of any right of any person to any money paid or credited to the account, which it would not incur or be under or be deemed to have in the case of an account kept by a person entitled absolutely to all the money paid or credited to it; and

• (b) the bank or society shall not have any recourse or right against money standing to the credit of the account, in respect of any liability of the solicitor to the bank, other than a liability in connection with the account.

Bankers' books

86

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Supplementary

Interpretation

87

• (1) In this Act, except where the context otherwise requires,—

• . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• “ bank ” means the Bank of England or a person (other than a building society) who has permission under Part 4A of the Financial Services and Markets Act 2000 to accept deposits ...;

• “ building society ” means a building society within the meaning of the Building Societies Act 1986 . . ..

• “ the Charter ” means the Royal Charter dated 26th February 1845, whereby the Society was incorporated, together with the Royal Charters supplemental to it dated respectively 26th November 1872, 4th June 1903, 2nd June 1909 and 10th March 1954;

• “ client ” includes— in relation to contentious business, any person who as a principal or on behalf of another person retains or employs, or is about to retain or employ, a solicitor, and any person who is or may be liable to pay a solicitor’s costs;in relation to non–contentious business, any person who, as a principal or on behalf of another, or as a trustee or executor, or in any other capacity, has power, express or implied, to retain or employ, and retains or employs or is about to retain or employ, a solicitor, and any person for the time being liable to pay to a solicitor for his services any costs;

• “ client account ” means an account subject to rules under section 32(1)(a) ;

• “ contentious business ” means business done, whether as solicitor or advocate, in or for the purposes of proceedings begun before a court or before an arbitrator . . ., not being business which falls within the definition of non–contentious or common form probate business contained in section 128 of the Senior Courts Act 1981 ;

• “ contentious business agreement ” means an agreement made in pursuance of section 59;

• . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• “ costs ” includes fees, charges, disbursements, expenses and remuneration;

• “ the Council ” means the Council of the Society elected in accordance with the provisions of the Charter and this Act;

• . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• “ indemnity rules ” means rules under section 37;

• . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• “ local law society ” means a society which is for the time being recognised by the Council as representative of solicitors in some particular part of England and Wales;

• “ non–contentious business ” means any business done as a solicitor which is not contentious business as defined by this subsection;

• “officer”, in relation to a limited liability partnership, means a member of the limited liability partnership;

• . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• “ practising certificate ” has the meaning assigned to it by section 1;

• . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• “ the roll ” means the list of solicitors of the Senior Courts kept by the Society under section 6;

• “Secretary” of the Society includes any deputy or person appointed temporarily to perform the duties of that office;

• “ the Society ” means the Law Society, that is to say, the Society incorporated and regulated by the Charter;

• “ sole solicitor ” means a solicitor who is the sole principal in a practice (other than an incorporated practice) ;

• ...

• “ solicitor ” means solicitor of the Senior Courts ;

• “ solicitor in Scotland ” means a person enrolled or deemed to have been enrolled as a solicitor in pursuance of the Solicitors (Scotland) Act 1933;

• . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• “ training regulations ” means regulations under section 2;

• “ the Tribunal ” means the Solicitors Disciplinary Tribunal;

• “ trust ” includes an implied or constructive trust and a trust where the trustee has a beneficial interest in the trust property, and also includes the duties incident to the office of a personal representative, and “ trustee ” shall be construed accordingly;

• “ unqualified person ” means a person who is not qualified under section 1 to act as a solicitor.

• (1A) In this Act “authorised insurer” means—

• (a) a person who has permission under Part 4A of the Financial Services and Markets Act 2000 to effect or carry out contracts of insurance of a relevant class;

• (b) a person who carries on an insurance market activity, within the meaning of section 316(3) of that Act;

• (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (1B) A contract of insurance is of a relevant class for the purposes of subsection (1A) if it insures against risks arising from—

• (a) accident;

• (b) credit;

• (c) legal expenses;

• (d) general liability to third parties;

• (e) sickness;

• (f) suretyship;

• (g) miscellaneous financial loss.

• (1C) The definition of “bank” in subsection (1) and subsections (1A) and (1B) must be read with—

• (a) section 22 of the Financial Services and Markets Act 2000;

• (b) any relevant order under that section; and

• (c) Schedule 2 to that Act.

• (2) In this Act—

• (a) references to the removal of a solicitor’s name from the roll are references to its removal at his own request or in pursuance of regulations under section 28(3A);

• (b) references to striking a solicitor’s name off the roll are references to striking it off as a disciplinary sanction; and

• (c) references to removal or striking off include references to deleting an entry made by means of a computer by whatever means are appropriate.

• (3) In this Act, except where otherwise indicated—

• (a) a reference to a numbered Part, section or Schedule is a reference to the Part or section of, or the Schedule to, this Act so numbered;

• (b) a reference in a section to a numbered subsection is a reference to the subsection of that section so numbered;

• (c) a reference in a section, subsection or Schedule to a numbered paragraph is a reference to the paragraph of that section, subsection or Schedule so numbered; and

• (d) a reference in a paragraph to a numbered sub–paragraph is a reference to the sub–paragraph of that paragraph so numbered.

• (4) Except where the context otherwise requires, references in this Act to any enactment shall be construed as references to that enactment as amended or applied by or under any other enactment, including this Act.

Saving for solicitors to public departments and City of London

88

• (1) Nothing in this Act shall prejudice or affect any rights or privileges of the solicitor to the Treasury, any other public department, the Church Commissioners or the Duchy of Cornwall, or require any such officer or any clerk or officer appointed to act for him to be admitted or enrolled or to hold a practising certificate in any case where it would not have been necessary for him to be admitted or enrolled or to hold such a certificate if this Act had not been passed.

• (1A) The exemption from the requirement to hold a practising certificate conferred by subsection (1) above shall not apply to solicitors who are Crown Prosecutors.

• (2) Sections 31 and 32(1) shall not apply to, and nothing in this Act shall prejudice or affect any rights or privileges which immediately before the commencement of this Act attached to the office of, the Solicitor of the City of London.

Consequential amendments, repeals, savings, etc.

89

• (1) The enactments specified in Schedule 3 shall have effect subject to the amendments there specified, being amendments consequential upon the provisions of this Act.

• (2) The enactments specified in Schedule 4 are hereby repealed to the extent specified in the third column of that Schedule.

• (3) In so far as any instrument or other document made, issued, served or kept or treated as having been or having effect as if made, issued, served or kept, or other thing done or treated as having been or having effect as if done, under or for the purposes of any of the enactments repealed by this Act (in this section referred to as “the repealed enactments”) could have been made, issued, served, kept or done under or for the purposes of a corresponding provision of this Act, it shall not be invalidated by the repeal but shall have effect as if made, issued, served, kept or done under or for the purposes of that corresponding provision; and anything begun under any of the repealed enactments may be continued under any corresponding provision of this Act as if begun under that provision.

• (4) Any enactment or other document referring to any of the repealed enactments shall, so far as may be necessary for preserving its effect, be construed as referring to this Act or to the corresponding provision of this Act.

• (5) References in any enactment or instrument to the disciplinary committee constituted under section 46 of the Solicitors Act 1957 shall be construed as references to the Tribunal.

• (6) References in any enactment to solicitors, attorneys or proctors, or to the registrar of attorneys and solicitors or the registrar of solicitors, shall be construed as references to solicitors and to the Society respectively.

• (7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (8) Nothing in this Act shall be taken as prejudicing the operation of sections 16(1) and 17(2)(a) of the Interpretation Act 1978 (which relates to the effect of repeals).

Short title, commencement and extent

90

• (1) This Act may be cited as the Solicitors Act 1974.

• (2) This Act shall come into force on such day as the Lord Chancellor may by order made by statutory instrument appoint, not being earlier than the first day on which all the provisions of the Solicitors (Amendment) Act 1974 are in force.

• (3) If any order made under section 19(7) of the Solicitors (Amendment) Act 1974 makes any savings from the effect of any provision of that Act which it brings into force, the order under subsection (2) may make corresponding savings from the effect of the corresponding provision of this Act.

• (4) The provisions of this Act extend to England and Wales only, with the exception of—

• (a) section 4(4) and the repeal of section 5(3) of the Solicitors Act 1957, which extend to Scotland;

• (b) section 29 and the repeal of section I of the Solicitors (Amendment) Act 1974, which extend to Northern Ireland;

• (c) sections 5(3) and 86, . . . and the repeals of section 5(2) of the Solicitors Act 1957 and paragraphs 1 and 5 of Schedule 2 to the Solicitors (Amendment) Act 1974, all of which extend both to Scotland and to Northern Ireland.

SCHEDULE 1

Part I — Circumstances in which Society may Intervene

1

• (1) Subject to sub–paragraph (2), the powers conferred by Part II of this Schedule shall be exercisable where—

• (a) the Society has reason to suspect dishonesty on the part of—

• (i) a solicitor, or

• (ii) an employee of a solicitor, or

• (iii) the personal representatives of a deceased solicitor,

in connection with that solicitor’s practice or former practice or in connection with any trust of which that solicitor is or formerly was a trustee or that employee is or was a trustee in his capacity as such an employee ;

• (aa) the Society has reason to suspect dishonesty on the part of a solicitor (“S) in connection with—

• (i) the business of any person of whom S is or was an employee, or of any body of which S is or was a manager, or

• (ii) any business which is or was carried on by S as a sole trader;

• (b) the Society considers that there has been undue delay on the part of the personal representatives of a deceased solicitor who immediately before his death was practising as a sole solicitor in connection with that solicitor’s practice or in connection with any trust ;

• (c) the Society is satisfied that a solicitor has failed to comply with rules made by virtue of section 31, 32 or 37(2)(c);

• (d) a solicitor has been made bankrupt or has made a composition or arrangement with his creditors;

• (e) a solicitor has been committed to prison in any civil or criminal proceedings;

• (ee) the Society is satisfied that a sole solicitor is incapacitated by illness , injury or accident to such an extent as to be unable to attend to his practice;

• (f) a solicitor lacks capacity (within the meaning of the Mental Capacity Act 2005) to act as a solicitor and powers under sections 15 to 20 or section 48 of that Act are exercisable in relation to him;

• (g) the name of a solicitor has been removed from or struck off the roll or a solicitor has been suspended from practice.

• (h) the Society is satisfied that a . . . solicitor has abandoned his practice;

• (i) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (j) any power conferred by this Schedule has been exercised in relation to a sole solicitor by virtue of sub–paragraph (1)(a) and he has acted as a sole solicitor within the period of eighteen months beginning with the date on which it was so exercised;

• (k) the Society is satisfied that a person has acted as a solicitor at a time when he did not have a practising certificate which was in force;

• (l) the Society is satisfied that a solicitor has failed to comply with any condition, subject to which his practising certificate was granted or otherwise has effect, to the effect that he may act as a solicitor only—

• (i) in employment which is approved by the Society in connection with the imposition of that condition;

• (ii) as a member of a partnership which is so approved;

• (iii) as a manager of a body recognised by the Society under section 9 of the Administration of Justice Act 1985 and so approved; or

• (iv) in any specified combination of those ways.

• (m) the Society is satisfied that it is necessary to exercise the powers conferred by Part 2 of this Schedule (or any of them) in relation to a solicitor to protect—

• (i) the interests of clients (or former or potential clients) of the solicitor or his firm, or

• (ii) the interests of the beneficiaries of any trust of which the solicitor is or was a trustee.

• (1A) In sub-paragraph (1) “ manager ” has the same meaning as in the Legal Services Act 2007 (see section 207 of that Act).

• (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2

On the death of a sole solicitor paragraphs 6 to 8 shall apply to the client accounts of his practice.

3

The powers conferred by Part II of this Schedule shall also be exercisable, subject to paragraphs 5(4) and 10(9), where—

• (a) the Society is satisfied that there has been undue delay—

• (i) on the part of a solicitor in connection with any matter in which the solicitor or his firm is or was acting on behalf of a client or with any trust, or

• (ii) on the part of an employee of a solicitor in connection with any trust of which the employee is or was a trustee in his capacity as such an employee; and

• (b) the Society by notice in writing invites the solicitor to give an explanation within a period of not less than 8 days specified in the notice; and

• (c) the solicitor fails within that period to give an explanation which the Society regards as satisfactory; and

• (d) the Society gives notice of the failure to the solicitor and (at the same or any later time) notice that the powers conferred by Part II of this Schedule are accordingly exercisable.

4

• (1) Where the powers conferred by Part II of this Schedule are exercisable in relation to a solicitor, they shall continue to be exercisable after his death or after his name has been removed from or struck off the roll.

• (2) The references to the solicitor or his firm in paragraphs 5(1), 6(2) and (3) , 6A, 8, 9(1) , (5) and (6) and 10(2) and (7) include, in any case where the solicitor has died, references to his personal representatives.

Part II — Powers Exercisable on Intervention

Money

5

• (1) The High Court, on the application of the Society, may order that no payment shall be made without the leave of the court by any person (whether or not named in the order) of any money held by him (in whatever manner and whether it was received before or after the making of the order) on behalf of the solicitor or his firm.

• (2) No order under this paragraph shall take effect in relation to any person to whom it applies unless the Society has served a copy of the order on him (whether or not he is named in it) and, in the case of a bank or other financial institution, has indicated at which of its branches the Society believes that the money to which the order relates is held.

• (3) A person shall not be treated as having disobeyed an order under this paragraph by making a payment of money if he satisfies the court that he exercised due diligence to ascertain whether it was money to which the order related but nevertheless failed to ascertain that the order related to it.

• (4) This paragraph does not apply where the powers conferred by this Part of this Schedule are exercisable by virtue of paragraph 3.

6

• (1) Without prejudice to paragraph 5, if the Society passes a resolution to the effect that any sums of money to which this paragraph applies, and the right to recover or receive them, shall vest in the Society, all such sums shall vest accordingly (whether they were received by the person holding them before or after the Society's resolution) and shall be held by the Society on trust to exercise in relation to them the powers conferred by this Part of this Schedule and subject thereto and to rules under paragraph 6B upon trust for the persons beneficially entitled to them.

• (2) This paragraph applies—

• (a) where the powers conferred by this paragraph are exercisable by virtue of paragraph 1, to all sums of money held by or on behalf of the solicitor or his firm in connection with

• (i) his practice or former practice,

• (ii) any trust of which he is or formerly was a trustee, or

• (iii) any trust of which a person who is or was an employee of the solicitor is or was a trustee in the person's capacity as such an employee;

• (b) where they are exercisable by virtue of paragraph 2, to all sums of money in any client account; and

• (c) where they are exercisable by virtue of paragraph 3, to all sums of money held by or on behalf of the solicitor or his firm in connection with the trust or other matter in connection with which the Society is satisfied there has been undue delay as mentioned in sub-paragraph (a) of that paragraph.

• (3) The Society shall serve on the solicitor or his firm and on any other person having possession of sums of money to which this paragraph applies a certified copy of the Council’s resolution and a notice prohibiting the payment out of any such sums of money.

• (4) Within 8 days of the service of a notice under sub–paragraph (3), the person on whom it was served, on giving not less than 48 hours’ notice in writing to the Society and (if the notice gives the name of the solicitor instructed by the Society) to that solicitor, may apply to the High Court for an order directing the Society to withdraw the notice.

• (5) If the court makes such an order, it shall have power also to make such other order with respect to the matter as it may think fit.

• (6) If any person on whom a notice has been served under sub–paragraph (3) pays out sums of money at a time when such payment is prohibited by the notice, he shall be guilty of an offence and liable on summary conviction to a fine not exceeding level 3 on the standard scale.

7

• (1) If the Society takes possession of any sum of money to which paragraph 6 or 6A(3) applies, the Society shall pay it into a special account in the name of the Society or of a person nominated on behalf of the Society, or into a client account of a solicitor nominated on behalf of the society, and any such person or solicitorshall hold that sum on trust to permit the Society to exercise in relation to it the powers conferred by this Part of this Schedule and subject thereto and to rules under paragraph 6B on trust for the persons beneficially entitled to it.

• (2) A bank or other financial institutionat which a special account is kept shall be under no obligation to ascertain whether it is being dealt with properly.

8

Without prejudice to paragraphs 5 to 7, if the High Court is satisfied, on an application by the Society, that there is reason to suspect that any person holds money on behalf of the solicitor or his firm, the court may require that person to give the Society information as to any such money and the accounts in which it is held.

Documents

9

• (1) The Society may give notice to the solicitor or his firm requiring the production or delivery to any person appointed by the Society at a time and place to be fixed by the Society—

• (a) where the powers conferred by this Part of this Schedule are exercisable by virtue of paragraph 1, of all documents in the possession or under the control of the solicitor or his firm in connection with his practice or former practice or with any trust of which the solicitor is or was a trustee; and

• (b) where they are exercisable by virtue of paragraph 3, of all documents in the possession or under the control of the solicitor or his firm in connection with the trust or other matters of which the Society is satisfied(whether or not they relate also to other matters).

• (2) The person appointed by the Society may take possession of any such documents on behalf of the Society.

• (3) Except in a case where an application has been made to the High Court under sub–paragraph (4), if any person having possession or control of any such documents refuses, neglects or otherwise fails to comply with a requirement under sub–paragraph (1), he shall be guilty of an offence and liable on summary conviction to a fine not exceeding level 3 on the standard scale.

• (4) The High Court, on the application of the Society, may order a person required to produce or deliver documents under sub–paragraph (1) to produce or deliver them to any person appointed by the Society at such time and place as may be specified in the order, and authorise him to take possession of them on behalf of the Society.

• (5) If on an application by the Society the High Court is satisfied that there is reason to suspect that documents in relation to which the powers conferred by sub–paragraph (1) are exercisable have come into the possession or under the control of some person other than the solicitor or his firm, the court may order that person to produce or deliver the documents to any person appointed by the Society at such time and place as may be specified in the order and authorise him to take possession of them on behalf of the Society.

• (5A) In the case of a document which consists of information which is stored in electronic form, a requirement imposed by a notice under sub-paragraph (1) or an order under sub-paragraph (4) or (5), is a requirement to produce or deliver the information in a form in which it is legible or from which it can readily be produced in a legible form.

• (6) On making an order under this paragraph, or at any later time, the court, on the application of the Society, may authorise a person appointed by the Society to enter any premises (using such force as is reasonably necessary) to search for and take possession of

• (a) any documents to which the order relates.

• (b) any property—

• (i) in the possession of or under the control of the solicitor or his firm, or

• (ii) in the case of an order under sub-paragraph (5), which was in the possession or under the control of such a person and has come into the possession or under the control of the person in respect of whom the order is made,

which the Society reasonably requires for the purpose of accessing information contained in such documents,

and to use property obtained under paragraph (b) for that purpose.

• (7) The Society, on taking possession of any documents or other property under this paragraph, shall serve upon the solicitor or personal representatives and upon any other person from whom they were received on the Society’s behalf or from whose premises they were taken a notice that possession has been taken on the date specified in the notice.

• (8) Subject to sub–paragraph (9) a person upon whom a notice under sub–paragraph (7) is served, on giving not less than 48 hours’ notice to the Society and (if the notice gives the name of the solicitor instructed by the Society) to that solicitor, may apply to the High Court for an order directing the Society to deliver the documents or other property to such person as the applicant may require.

• (9) A notice under sub–paragraph (8) shall be given within 8 days of the service of the Society’s notice under sub–paragraph (7).

• (10) Without prejudice to the foregoing provisions of this Schedule, the Society may apply to the High Court for an order as to the disposal or destruction of any documents or other property in its possession by virtue of this paragraph or paragraph 10.

• (11) On an application under sub–paragraph (8) or (10), the Court may make such order as it thinks fit.

• (12) Except so far as its right to do so may be restricted by an order on an application under sub–paragraph (8) or (10), the Society may take copies of or extracts from any documents in its possession by virtue of this paragraph or paragraph 10 and require any person to whom it is proposed that such documents shall be delivered, as a condition precedent to delivery, to give a reasonable undertaking to supply copies or extracts to the Society.

Mail and other forms of communication

10

• (1) The High Court, on the application of the Society, may from time to time make a communications redirection order.

• (2) A communications redirection order is an order that specified communications to the solicitor or his firm are to be directed, in accordance with the order, to the Society or any person appointed by the Society.

• (3) For the purposes of this paragraph—

• (a) “ specified communications ” means communications of such description as are specified in the order;

• (b) the descriptions of communications which may be so specified include—

• (i) communications in the form of a postal packet;

• (ii) electronic communications;

• (iii) communications by telephone.

• (4) A communications redirection order has effect for such time not exceeding 18 months as is specified in the order.

• (5) Where a communications redirection order has effect, the Society or the person appointed by the Society may take possession or receipt of the communications redirected in accordance with the order.

• (6) Where a communications redirection order is made, the Society must pay to—

• (a) in the case of an order relating to postal packets, the postal operator concerned, and

• (b) in any other case, the person specified in the order,

the like charges (if any) as would have been payable for the redirection of the communications to which the order relates if the addressee had permanently ceased to occupy or use the premises or other destination of the communications and had applied to the postal operator or the specified person (as the case may be) to redirect the communications to him as mentioned in the order.

• (7) The High Court may, on the application of the Society, authorise the Society, or a person appointed by it, to take such steps as may be specified in the order in relation to any website purporting to be or have been maintained by or on behalf of the solicitor or his firm if the High Court is satisfied that the taking of those steps is necessary to protect the public interest or the interests of clients (or potential or former clients) of the solicitor or his firm.

• (8) In this paragraph “ postal operator ” and “ postal packet ” have the meaning given by section 27 of the Postal Services Act 2011.

• (9) This paragraph does not apply where the powers conferred by this Part of this Schedule are exercisable by virtue of paragraph 3.

Trusts

11

• (1) If the solicitor or his personal representative is a trustee of a trust , the Society may apply to the High Court for an order for the appointment of a new trustee in substitution for him.

• (2) The Trustee Act 1925 shall have effect in relation to an appointment of a new trustee under this paragraph as it has effect in relation to an appointment under section 41 of that Act.

General

12

The powers in relation to sums of money , documents and other property conferred by this Part of this Schedule shall be exercisable notwithstanding any lien on them or right to their possession.

13

Subject to any order for the payment of costs that may be made on an application to the court under this Schedule, any costs incurred by the Society for the purposes of this Schedule, including, without prejudice to the generality of this paragraph, the costs of any person exercising powers under this Part of this Schedule on behalf of the Society, shall be paid by the Solicitor or his personal representatives and shall be recoverable from him or them as a debt owing to the Society.

14

Where an offence under this Schedule committed by a body corporate is proved to have been committed with the consent or connivance of, or to be attributable to any neglect on the part of, any director, manager, secretary or other similar officer of the body corporate or any person who was purporting to act in any such capacity, he, as well as the body corporate, shall be guilty of that offence and shall be liable to be proceeded against and punished accordingly.

15

Any application to the High Court under this Schedule may be disposed of in chambers.

16

The Society may do all things which are reasonably necessary for the purpose of facilitating the exercise of its powers under this Schedule.

SCHEDULE 2

1

The fund shall be maintained and administered by the Society and shall be held by the Society on trust for the purposes provided for in section 36 and this Schedule.

2

• (1) Subject to sub–paragraphs (2) and (2A), every solicitor—

• (a) shall on each occasion on which he applies for a practising certificate pay to the Society with the fee payable in respect of that certificate under section 11 a contribution (in this Schedule referred to as an “annual contribution”) of such amount as the Council may from time to time determine; and

• (b) where it appears from his application for a practising certificate that he has held or received clients’ money at any time during the period specified in the application, shall also, if so required by the Society, pay to the Society, before the issue of the certificate, a further contribution (in this Schedule referred to as a “special levy”) of such amount . . . as the Council may from time to time determine.

• (2) An annual contribution and a special levy—

• (a) shall not be payable in respect of the first three practising certificates to be issued to a solicitor after his admission; and

• (b) shall be payable in the reduced amount mentioned in sub–paragraph (3) in respect of the next three certificates to be so issued.

• (2A) Sub–paragraph (1) above shall not apply to any solicitor who is a Crown Prosecutor.

• (3) The reduced amount referred to in sub–paragraph (2)(b) is one–half of the amount which would otherwise be payable.

• (3A) The Council may require a solicitor to pay an annual contribution of a reduced amount where that payment is made with respect to a practising certificate which has a replacement date which is less than 12 months after the replacement date of the solicitor’s previous practising certificate.

• (3B) Where it appears from his application for a practising certificate that a solicitor has not held or received clients’ money at any time during the period specified in the application, the Council may require him—

• (a) to pay an annual contribution of a specified reduced amount on that application, or

• (b) to pay no annual contribution on that application.

• (4) All annual contributions and special levies received by the Society under this paragraph shall be paid into the fund.

3

The Society may invest any money which forms part of the fund in any investments in which trustees may invest under the general power of investment in section 3 of the Trustee Act 2000 (as restricted by sections 4 and 5 of that Act).

4

. . . the Society may borrow for the purposes of the fund from any lender and may charge any investments of the fund by way of security for any such loan; but the aggregate sum owing at any one time in respect of such loans shall not exceed £100,000.

5

The Society may insure with authorised insurers for such purposes and on such terms as the Council may deem expedient in relation to the fund.

6

There shall be carried to the credit of the fund—

• (a) all annual contributions and special levies paid to the Society in pursuance of paragraph 2;

• (b) all interest, dividends and other income and accretions of capital arising from the investment of the fund or any part of it;

• (c) the proceeds of any realisation of any investments of the fund;

• (d) all money borrowed for the purposes of the fund;

• (e) all sums received by the Society under any insurance effected by the society under paragraph 5;

• (f) all sums received by the Society under section 36(4); and

• (g) any other money which may belong or accrue to the fund or be received by the Society in respect of the fund.

7

All money from time to time forming part of the fund and all investments of the fund shall be applicable—

• (a) for payment of any costs, charges and expenses of establishing, maintaining, administering and applying the fund;

• (b) for payment of any premiums on insurances affected by the Society under paragraph 5;

• (c) for repayment of any money borrowed by the Society for the purposes of the fund and for payment of interest on any money so borrowed;

• (d) for payment of any grants which the Society may make under section 36;

• (e) for payment of all costs, charges and expenses incurred by the Society by virtue of paragraph 1(1)(a) of Schedule 1 and of any costs or damages incurred by the Society or its employees or agents as a result of proceedings against the Society or its employees or agents for any act or omission done or made by it or them in good faith and in the execution or purported execution of the powers conferred by Part II of Schedule 1;

• (f) for payment of any other sums properly payable out of the fund by virtue of section 36 or this Schedule.

SCHEDULE 3

1

In section 3(3) of the Forgery Act 1913, in paragraph (e) after the words " the Commissioner for Oaths Act 1889 " insert, in place of the words inserted there by Schedule 2 to the Solicitors (Amendment) Act 1974, the words " or the Solicitors Act 1974 ".

2

In section 216(1) of the Supreme Court of Judicature (Consolidation) Act 1925, in paragraph (a) after the word "oaths " insert, in place of the words inserted there by Schedule 2 to the Solicitors (Amendment) Act 1974, the words " and by solicitors exercising the powers of commissioners for oaths by virtue of section 81 of the Solicitors Act 1974 ".

3

In section 88 (5) of the Patents Act 1949, for the words " section forty-seven of the Solicitors Act 1932 " substitute the words " section 22 of the Solicitors Act 1974 ".

4

In section 20(3) of the Justices of the Peace Act 1949—

• (a) for the words " subsection (1) of section 2 of the Solicitors (Amendment) Act 1956 ", and

• (b) for the words " the Solicitors Acts 1932 to 1956 ",

substitute, in place of the words substituted for those words by Schedule 2 to the Solicitors (Amendment) Act 1974, the words " the Solicitors Act 1974 ".

5

In Part III of Schedule 1 to the House of Commons Disqualification Act 1957 insert, in place of the entry inserted there by Schedule 2 to the Solicitors (Amendment) Act 1974, the following entry:—

• Lay observer appointed under section 45 of the Solicitors Act 1974.

6

In section 192(2) of the County Courts Act 1959 (as substituted by section 10(2) of the Administration of Justice Act 1969), for paragraph (c) substitute the following paragraph:—

(c) section 69(3) of the Solicitors Act 1974

.

7

In section 1(2) of the Barristers (Qualification for Office) Act 1961, for the words " the Solicitors Act 1957 " substitute the words " the Solicitors Act 1974 ".

8

In section 4(2) of the Matrimonial Causes Act 1967, for the words " section 73(4) of the Solicitors Act 1957 " substitute the words " section 74(3) of the Solicitors Act 1974 ".

9

In section 223(1) of the Local Government Act 1972, for the words " the Solicitors Acts 1957 to 1965 " substitute the words " the Solicitors Act 1974 ".

10

In Schedule 2 to the Legal Aid Act 1974, in paragraph 4(2) for the words " subsection (4) of section 73 of the Solicitors Act 1957 " substitute the words " subsection (3) of section 74 of the Solicitors Act 1974 ".

SCHEDULES 3

Qualifications for practising as solicitor.

1A

A person who has been admitted as a solicitor and whose name is on the roll shall, if he would not otherwise be taken to be acting as a solicitor, be taken for the purposes of this Act to be so acting if he is employed in connection with the provision of any legal services—

• (a) by any person who is qualified to act as a solicitor;

• (b) by any partnership at least one member of which is so qualified; . . .

• (c) by a body recognised . . . under section 9 of the Administration of Justice Act 1985 (incorporated practices). or

• (d) by any other person who, for the purposes of the Legal Services Act 2007, is an authorised person in relation to an activity which is a reserved legal activity (within the meaning of that Act).

1B

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

10A

• (1) The Society must keep a register of all solicitors who hold practising certificates.

• (2) The register must contain—

• (a) the full name of each solicitor who holds a practising certificate,

• (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (c) such other information as may be specified in regulations under section 28(1)(d).

Imposition of conditions while practising certificates are in force.

12A

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

13ZA

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

13ZB

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Publicity in relation to suspension of practising certificates.

13A

• (1) Subject to the provisions of this section, the Society may in the case of any solicitor direct that his practising certificate for the time being in force (his “current certificate”) shall have effect subject to such conditions as the Society may think fit.

• (2) The power conferred by subsection (1) is exercisable in relation to a solicitor at any time during the period for which the solicitor's current certificate is in force if—

• (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (b) it appears to the Society that the case is of a prescribed description.

• (3) “Prescribed” means prescribed by regulations under section 28.

• (6) A solicitor in whose case a direction is given under this section may appeal to the High Court against the decision of the Society.

• (7) On an appeal under subsection (6), the High Court may—

• (a) affirm the decision of the Society; or

• (b) direct that the appellant’s current certificate shall have effect subject to such conditions as the High Court thinks fit; or

• (d) make such other order as it thinks fit.

• (7A) The decision of the High Court on an appeal under subsection (6) shall be final.

• (8) Subsections (4) and (5) of section 10 apply for the purposes of subsection (1) of this section as they apply for the purposes of that section.

• (9) A solicitor who holds a practising certificate subject to a condition imposed under subsection (1) which prohibits that solicitor from taking any steps specified in the condition, except with the approval of the Society, may appeal to the High Court against any decision by the Society to refuse to approve the taking of any step for the purposes of that condition.

• (10) On an appeal under subsection (9), the High Court may—

• (a) affirm the decision of the Society,

• (b) direct the Society to approve the taking of one or more steps for the purposes of the condition, or

• (c) make such other order as the High Court thinks fit.

• (11) The decision of the High Court on an appeal under subsection (9) shall be final.

• (12) In relation to an appeal under this section the High Court may make such order as it thinks fit as to payment of costs.

13B

• (1) Where—

• (a) a solicitor has been convicted of–

• (i) an offence involving dishonesty or deception; or

• (ii) an indictable offence; and

• (b) the Society has made an application to the Tribunal under section 47 with respect to him,

the Society may direct that any practising certificate ... of his which is for the time being in force be suspended.

• (2) Any such suspension shall be for such period, not exceeding six months, as the Society shall specify in the direction.

• (3) If, before the specified period expires–

• (a) the Tribunal determines the Society’s application;

• (b) the conviction is quashed or set aside; or

• (c) the Society withdraws its application to the Tribunal,

the suspension shall cease to have effect.

• (4) Where the specified period comes to an end without any of the events mentioned in subsection (3) having occurred, the Society may direct that the suspension be continued for such period, not exceeding six months, as it shall specify in the direction.

• (5) A suspension under this section may only be extended once under subsection (4).

• (6) Nothing in this section is to be taken as in any way affecting the Tribunal’s power to suspend a solicitor from practice ... .

• (7) A solicitor in whose case a direction is given under subsection (1) or (4) may appeal to the High Court against the direction within one month of being notified of it.

• (8) In an appeal under subsection (7), the High Court may–

• (a) affirm the suspension;

• (b) direct that the appellant’s certificate shall not be suspended but shall have effect subject to such conditions as the High Court thinks fit;

• (c) by order revoke the direction; or

• (d) make such other order as it thinks fit.

• (9) In relation to an appeal under subsection (7) the High Court may make such order as it thinks fit as to payment of costs.

• (10) The decision of the High Court on an appeal under subsection (7) shall be final.

Duration of suspension of practising certificates.

17A

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

17B

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

22A

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

33A

• (1) The Society may make rules ... empowering the Society to require a solicitor to produce documents relating to any account kept by him at a bank or with a building society—

• (a) in connection with his practice; or

• (b) in connection with any trust of which he is or formerly was a trustee,

for inspection by a person appointed by the Society pursuant to the rules.

• (2) The Society shall be at liberty to disclose information obtained in exercise of the powers conferred by rules made under subsection (1) for use in investigating the possible commission of an offence by the solicitor and for use in connection with any prosecution of the solicitor consequent on the investigation.

Sole solicitors

34A

• (1) Rules made by the Society may provide for any rules made under section 31, 32, 33A or 34 to have effect in relation to employees of solicitors with such additions, omissions or other modifications as appear to the Society to be necessary or expedient.

• (2) If any employee of a solicitor fails to comply with rules made under section 31 or 32, as they have effect in relation to the employee by virtue of subsection (1), any person may make a complaint in respect of that failure to the Tribunal.

• (3) If any employee of a solicitor fails to comply with rules made under section 34, as they have effect in relation to the employee by virtue of subsection (1), a complaint in respect of that failure may be made to the Tribunal by or on behalf of the Society.

34B

• (1) Where rules made under section 32(1) have effect in relation to employees of solicitors by virtue of section 34A(1), section 85 applies in relation to an employee to whom the rules have effect who keeps an account with a bank or building society in pursuance of such rules as it applies in relation to a solicitor who keeps such an account in pursuance of rules under section 32.

• (2) Subsection (3) applies where rules made under section 32—

• (a) contain any such provision as is referred to in section 33(1), and

• (b) have effect in relation to employees of solicitors by virtue of section 34A(1).

• (3) Except as provided by the rules, an employee to whom the rules are applied is not liable to account to any client, other person or trust for interest received by the employee on money held at a bank or building society in an account which is for money received or held for, or on account of—

• (a) clients of the solicitor, other persons or trusts, generally, or

• (b) that client, person or trust, separately.

• (4) Subsection (5) applies where rules made under section 33A(1) have effect in relation to employees of solicitors by virtue of section 34A(1).

• (5) The Society may disclose a report on or information about the accounts of any employee of a solicitor obtained in pursuance of such rules for use—

• (a) in investigating the possible commission of an offence by the solicitor or any employees of the solicitor, and

• (b) in connection with any prosecution of the solicitor or any employees of the solicitor consequent on the investigation.

• (6) Where rules made under section 34 have effect in relation to employees of solicitors by virtue of section 34A(1), section 34(9) and (10) apply in relation to such an employee as they apply in relation to a solicitor.

36A

• (1) Compensation rules may require or authorise the Society to establish or maintain a fund or funds (“compensation funds”) for the purpose of making grants in respect of compensation claims.

• (2) Compensation rules may require solicitors, or solicitors of a description prescribed in the rules, to make contributions to compensation funds of such amounts, at such times and in such circumstances, as may be prescribed in or determined in accordance with the rules.

• (3) Any amount payable by virtue of such a requirement may be recovered as a debt due to the Society.

• (4) Subsection (2) does not apply to a solicitor who is a Crown Prosecutor.

• (5) The Society may invest any money which forms part of a compensation fund in any investments in which trustees may invest under the general power of investment in section 3 of the Trustee Act 2000 (as restricted by sections 4 and 5 of that Act).

• (6) The Society may insure with authorised insurers, in relation to compensation funds, for such purposes and on such terms as it considers appropriate.

• (7) The Society may, in such circumstances and subject to such conditions as may be prescribed in or determined in accordance with compensation rules—

• (a) borrow for the purposes of a compensation fund;

• (b) charge investments which form part of a compensation fund as security for borrowing by the Society for the purposes of that fund.

• (8) A compensation fund may be applied by the Society for the purposes mentioned in subsection (9) (in addition to the making of grants in respect of compensation claims).

• (9) The purposes are—

• (a) payment of premiums on insurance policies effected under subsection (6);

• (b) repayment of money borrowed by the Society for the purposes of the fund and payment of interest on any money so borrowed;

• (c) payment of any other costs, charges or expenses incurred by the Society in establishing, maintaining, protecting administering or applying the fund;

• (d) payment of any costs, charges or expenses incurred by the Society in exercising its powers under Part 2 of Schedule 1;

• (e) payment of any costs or damages incurred by the Society, its employees or agents as a result of proceedings against it or them for any act or omission of its or theirs in good faith and in the exercise or purported exercise of such powers.

• (10) In this section—

• “compensation claim” has the same meaning as in section 36;

• “compensation fund” has the meaning given by subsection (1);

• “compensation rules” means rules under section 36(1).

Interest on clients’ money.

Inadequate professional services

37A

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Imposition by Council of disciplinary sanctions for inadequate professional services

44A

Examination of files

44B

• (1) The Society may by notice require a person to whom this section applies—

• (a) to provide information, or information of a description, specified in the notice, or

• (b) produce documents, or documents of a description, specified in the notice.

• (2) This section applies to—

• (a) a solicitor;

• (b) an employee of a solicitor;

• (c) a recognised body;

• (d) an employee or manager of, or a person with an interest in, a recognised body.

• (3) The Society may give a notice under this section only if it is satisfied that it is necessary to do so for the purpose of investigating—

• (a) whether there has been professional misconduct by a solicitor;

• (b) whether a solicitor, or an employee of a solicitor, has failed to comply with any requirements imposed by or by virtue of this Act or any rules made by the Society;

• (c) whether a recognised body, or any of its managers or employees has failed to comply with any requirement imposed by or by virtue of the Administration of Justice Act 1985 or any rules made by the Society and applicable to the body, manager or employee by virtue of section 9 of that Act;

• (d) whether there are grounds for making, or making an application to the Tribunal for it to make, an order under section 43(2) with respect to a person who is or was involved in a legal practice (within the meaning of section 43(1A)).

• (4) A notice under this section—

• (a) may specify the time and place at which, and manner and form in which, the information is to be provided or document is to be produced;

• (b) must specify the period within which the information is to be provided or the document produced;

• (c) may require the information to be provided or document to be produced to the Society or to a person specified in the notice.

• (5) The Society may pay to any person such reasonable costs as may be incurred by that person in connection with the provision of any information, or production of any document, by that person pursuant to a notice under this section.

• (6) Paragraphs 9(3) and (4) and 13, 15 and 16 of Schedule 1 apply in relation to the powers to obtain information conferred by this section, but for this purpose—

• (a) paragraph 9 of that Schedule has effect as if—

• (i) in sub-paragraph (3) for “such documents” there were substituted “ information to which a notice given to him under section 44B applies ”,

• (ii) in that sub-paragraph for “sub-paragraph (1)” there were substituted “ the notice ”, and

• (iii) in sub-paragraph (4) for “produce” (in the first place) to the end there were substituted “ provide information pursuant to a notice under section 44B to provide the information to any person appointed by the Society at such time and place as may be specified in the order. ”, and

• (b) the reference to the solicitor or his personal representative in paragraph 13 of that Schedule is to be construed as a reference to the person to whom the notice was given under this section.

• (7) Paragraphs 9 (other than sub-paragraphs (1) and (3)), 12, 13, 15 and 16 of Schedule 1 apply in relation to the powers to obtain documents conferred by this section as they apply in relation to the powers conferred by paragraph 9(1) of that Schedule, except that for this purpose—

• (a) any reference in paragraph 9 of that Schedule to a person appointed, or to a requirement, under sub-paragraph (1) of that paragraph is to be construed as a reference to a person appointed, or to a requirement to produce documents, under this section,

• (b) any reference in that paragraph to any such documents as are mentioned in paragraph 9(1) of that Schedule is to be construed as a reference to any documents to which a notice under this section applies,

• (c) the references to the solicitor or his firm in paragraph 9(5) and (6) of that Schedule, and the reference to the solicitor or personal representative in paragraph 9(7) of that Schedule, are to be construed as references to the person to whom the notice was given under this section, and

• (d) the reference in paragraph 9(12) of that Schedule to the Society is to be construed as including a reference to a person specified under subsection (4)(c).

• (8) Where powers conferred by Part 2 of Schedule 1 to the 1974 Act are exercisable in relation to a person within paragraph (a), (b), (c) or (d) of subsection (2), they continue to be so exercisable after the person has ceased to be a person within the paragraph in question.

• (9) In this section—

• “manager” has the same meaning as in the Legal Services Act 2007 (see section 207 of that Act);

• “recognised body” means a body recognised under section 9 of the Administration of Justice Act 1985;

and the reference to a person who has an interest in a recognised body is to be construed in accordance with sections 72 and 109 of the Legal Services Act 2007.

44BA

• (1) The Society may, by notice, require a person to whom a notice is given under section 44B (or a representative of the person) to attend at a time and place specified in the notice to provide an explanation of any information provided or document produced pursuant to the notice.

• (2) The Society may pay to any person such reasonable costs as may be incurred by that person in connection with that person's compliance with a requirement imposed under subsection (1).

• (3) Paragraphs 9(3) and (4) and 13, 15 and 16 of Schedule 1 apply in relation to a notice under this section, except that for this purpose—

• (a) paragraph 9 of that Schedule has effect as if—

• (i) in sub-paragraph (3) for “having” to “sub-paragraph (1)” there were substituted “ refuses, neglects or otherwise fails to comply with a requirement under section 44BA(1) ”, and

• (ii) in sub-paragraph (4) for “produce” (in the first place) to the end there were substituted “ provide an explanation of any information provided or document produced pursuant to a notice under section 44B (or a representative of such a person) to attend at a time and place specified in the order to provide an explanation of any information so provided or document so produced. ”, and

• (b) the reference to the solicitor or his personal representative in paragraph 13 of that Schedule is to be construed as a reference to the person to whom the notice was given under this section.

Professional indemnity.

44BB

• (1) The High Court, on the application of the Society, may order a person to whom section 44B does not apply—

• (a) to provide information, or information of a description, specified in the notice, or

• (b) to produce documents, or documents of a description, specified in the notice.

• (2) The High Court may make an order under this section only if it is satisfied—

• (a) that it is likely that the information or document is in the possession or custody of, or under the control of, the person, and

• (b) that there is reasonable cause to believe that the information or document is likely to be of material significance to an investigation into any of the matters mentioned in section 44B(3)(a) to (d).

• (3) An order under this section may direct the Society to pay to a person specified in the order such reasonable costs as may be incurred by that person in connection with the provision of any information, or production of any document, by that person pursuant to the order.

• (4) Section 44B(4) applies in relation to an order under this section as it applies in relation to a notice under section 44B.

• (5) Paragraphs 9(5A) and (7) to (12), 12, 13, 15 and 16 of Schedule 1 apply in relation to an order under this section as they apply in relation to an order under paragraph 9(4) of that Schedule, except that for this purpose—

• (a) the reference to the solicitor or personal representative in paragraph 9(7) of that Schedule is to be construed as a reference to the person in respect of whom the order under this section is made,

• (b) the reference in paragraph 9(12) of that Schedule to the Society is to be read as including a reference to a person specified under section 44B(4)(c) (as applied by subsection (4) of this section), and

• (c) the reference to the solicitor or his personal representative in paragraph 13 of that Schedule is to be construed as a reference to the person to whom the notice was given under this section.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

44BC

• (1) It is an offence for a person who knows or suspects an investigation into any of the matters mentioned in section 44B(3)(a) to (d) is being or is likely to be conducted—

• (a) to falsify, conceal, destroy or otherwise dispose of a document which the person knows or suspects is or would be relevant to the investigation, or

• (b) to cause or permit the falsification, concealment, destruction or disposal of such a document.

• (2) In proceedings for an offence under subsection (1) it is a defence for the accused to show that the accused had no intention of concealing facts disclosed by the documents from the person conducting the investigation.

• (3) It is an offence for a person, in purported compliance with a requirement imposed on the person under section 44B, 44BA or 44BB—

• (a) to provide information which the person knows to be false or misleading in a material particular, or

• (b) recklessly to provide information which is false or misleading in a material particular.

• (4) A person who is guilty of an offence under subsection (1) or (3) is liable—

• (a) on summary conviction, to imprisonment for a term not exceeding the general limit in a magistrates’ court or a fine not exceeding the statutory maximum, or both;

• (b) on conviction on indictment, to imprisonment for a term not exceeding 2 years or a fine, or both.

• (5) In relation to an offence under subsection (1) or (3) committed before 2 May 2022 the reference in subsection (4)(a) to the general limit in a magistrates’ court is to be read as a reference to 6 months.

Costs of investigations

44C

• (1) The Society may make regulations prescribing charges to be paid to the Society by solicitors who are the subject of a discipline investigation.

• (2) A “discipline investigation” is an investigation carried out by the Society into—

• (a) possible professional misconduct by a solicitor, or

• (b) a failure or apprehended failure by a solicitor to comply with any requirement imposed by or by virtue of this Act or any rules made by the Society.

• (3) Regulations under this section may—

• (a) make different provision for different cases or purposes;

• (b) provide for the whole or part of a charge payable under the regulations to be repaid in such circumstances as may be prescribed by the regulations.

• (4) Any charge which a solicitor is required to pay under regulations under this section is recoverable by the Society as a debt due to the Society from the solicitor.

• (5) This section (other than subsection (2)(a)) applies in relation to an employee of a solicitor as it applies in relation to a solicitor.

Disciplinary powers of the Society

44D